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Yen recovers versus dollar after Japan finance minister backs BoJ independence

The yen pared losses as Japanese yields narrowed the gap with Treasury yields, pulling USD/JPY back to the mid 157s after trading above 159 earlier in the week.

Reported · Written up by our desk · Major Pairs

The Japanese yen strengthened against the US dollar on Friday, with USD/JPY falling back to the mid 157s after previously hitting three week highs above 159 earlier in the week, according to FXStreet. The move came as Japanese yields rose, narrowing the gap with US Treasury yields.

Japan’s Finance Minister Satsuki Katayama said Prime Minister Sanae Takaichi very much respects the independence of the Bank of Japan, signaling the government will not interfere as the BoJ accelerates its monetary tightening cycle, FXStreet reported. Katayama also said she will not hesitate to take bold action on the yen.

FXStreet added that the minister’s comments marked the second time she has flagged possible intervention as investors watched the dollar yen pair approach the 160 level. It also noted that Japanese government bond yields rallied further on Friday, including a 10 year JGB yield that hit a fresh 3, though the article text provided is truncated before the figure is completed.

Latest closeUSD/JPY 158.89 ▲0.9%

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